HomeMy WebLinkAbout08-19-1971 AGENDA BACKUPAugust 19, 1971
FOR: HONORABLE ERS OF T BOARD OF DIRECTORS
G. A. Horstkotte, Jr., General Manager -Chief Engineer
Allocation of Costs, Rate Study for Valley Disposal Service, Inc.
I. : At the Board 'Meeting of August 5, staff wa directed to develop
ditE al0,0erational data to assist in determination of allocation of
costs fr 1970 between the I-gular Division (Sanitary District us Pleas
Hill) and the City Divis *4 of Valley Disposal Service, Inc.
2. C0I NTS:
a. In the covering Memorandum to the'rate',Study for Valley Disposal. SerVice,
Inc., staff stated that allocation of costs was the major problem in
developing the Study.
b. Basically, the problem was to determine a criteria for theequitable
allocation of costaTbetween the Sanitary District, Pleasant Hill and
the City of Walnut'Creek.' Financial statements for 1970 forera-
tionsconducted'in.the'Sanitary District were Available.' Sub equently,
financial statements for 1970 for Valley. Disposal Service (Consolidated)
were made available. However, Valley Consolidated data was not.pre-
sented" in a manner consistalct with data provided for Sanitary District
operations. Staff was not provided with financial statements for 1970
for operations conducted'in.the City of Walnut Creaktor for the opera-
tions in Pie ant Hill.
c. In addition to the financial data provided above, operational data,
i.e., number of customers, type of service, were provided for opera-
tions conducted within the Sanitary District. Operational data an
operations in Ple, 'ant Hill and Walnut Creek were not made available.
Subsequently, staff obtained from the City of Walnut Creek a copy of
Valley Disposal's request for a rate increase.
In addition to showing justification, this document purports to show
only the number of residental customers with type of service residing
in Walnut Creek.
d. Management has organized Valley Disposal Service, Inc., into two opera-
ting divisions, City and Regular, with the latter serving
two separate jurisdictional areas, Sanitary District and Pleasant Hill.
However, Valley Disposal Service, Inc,, is the only tax reporting entity.
Consequently, when staff requests financial statements from management
for operations conducted within the Sanitary District, such statements
purport to show amount of revenue generated from District customers
and a judgment by management as to the amount of costs involved to
service those customers. In reality, such financial statement r are
meaningless on the revenue side unless number of customers and type of
Ron, Mbrs. of the Bd. of Directors -2- August 19, 1971
service known. They are meaningless on the cost side unless the
criteria utilized by management to allocate costs between the
three geographical and jurisdictional areas is known.
e. From conversation with management, their accountant, and personal
inspection of facilities and operations, it is apparent that
Valley Disposal basically has adopted a job (area) cost'accountiug
systeu Assi nt of personnel and equipment 113 based on total
workload requirements of Valley Disposal (Consolidated) and not
on individual geographical or juri diction: areas. Costs related
to physical facilities and ad isistrative expense are Similarly
allocated to the three jurisdictional areas.
Allocation of costs to the Sanitary District by management was 37%
of total revenue for Valley Disposal (Consolidated). Staff was unable
to determine from management the criteria utilized to determine such
allocation.
Staff e nation of financial statements for the Sanitary District
di closev et operating income for 1970 amount to $28,963.00. How-
ever, the basic tax reporting entity, Valley Disposal (Consolidated)
reported for 1970 for the Regular Division (Sanitary District and
leasant Hill) net operating income of $92,937.58. Management in-
formed staff that Pleasant Hill represents 20% of the Regular Divis-
ion operations. Furthermore, comparison of balance sheets for
1970 for the Sanitary District and Valley Disposal (Consolidated)
indicated that assets of the Sanitary District were inflated
$180,408.70. Additionally, the balance sheet for the Sanitary Dis-
trict shows a long term debt of $41,479.40 due to Central Valley
Waste Service. However, the assets of Centr:1 Valley Waste Ser-
vice ($21,603.22) are not reflected on the Sanitary District
balance sheet but were assigned to the City Division balance sheet.
h. a result the information outlined i paragraph "g" above, staff
was not prepared to completely aeceptrnanageinsntaccept's judvflent in the
allocation of costs between Pleasant Hill, Walnut Creek and the
Sanitary District. Accordingly, staff considered allocation of
cost based on percentage of revenue to be the f rest method avail-
able, Sanitary District revenue for 1970 represented 36% of
the total revenue for Valley Disposal (Consolid:ted), staff allo-
cated oasts to Sanitary District utilizing the percentage.
L. As requested by the Board, staff attempted to develop an additional
criteria for allocation of costs between three jurisdictional areas,
The only operational dat available to staff was number of residen-
tial customers with type of service for the Sanitary District vs,
Walnut Creek. Accordingly, the criteria adopted was cost per can and
revenue per can. See enclosure for data,.
Ron. Mbrs of the Bd. of 'Directors
Forwarded:
G. A. Rorstkotte,'Jr4
General ' ° :ager -Chief e.er
eh
Respect ul submitted
Davis
atie Assistant -Secretary
August 19, 1971
Estimated Total Costs For City Division And Sanitary District $ 959,470.41
Estimated Total Ravenna Fox City Division And Sanitary District 1,060,840.71
Estimated Number of Residential Cans Picked Up In 1970
City Division — . . 956,473
Sanitary District. . .792,254
Total Cans . . .1,748,727
Average Cost per Can Picked Up
959 470.41
= ,55
11 748 727.00
Average Revenue per Can Picked Up $ 1 060 840.71
1,748,727.00
Sanitary District - 792,254 x .55 = $435,739.70 allocated cost
City Division - 956,473 x .55 =" 526060.15 allocated cost
Total allocated cost $961,799.85
Sanitary District - 792,254 x .61 = $483,274.94 allocated revenue
City Division - 956,473 x .61 = '5 3 448.53 allocated revenue
Total allocated Revenue -
$1,066,723,47
Sanitary District - 792,254 x .06 = 47,535,24 allocated income
City Divisiou - 956,473 x .06 = j2„.388.38 allocated income
Total allocated income $ 104,923,62
90% allocated aperating ratio
$389 627 .; 93% actual reported operating ratio, Sanitary :
$418,590
_$569 843,41= 89% estimated actual operating ratio, City Division
$642,250,71
$381/627 ' 41% estimated actual District allocation
$959,470,41
f cost
$4194590 39% estimated actual District allocation of revenue ratio
$1,060,840,71
61
August 19, 1971
MEMORANDUM FOR: The. Honorable Members of the Board of Directors
VIA: G. A. Horstkotte, General Manager -Chief Engiueer
SUBJECT: Authorization to pay Mr. Robert J. Foley in the amount of
$125.00 and Bohn and Carniato in the amount of $650,00
. BACKGROUND; The Board of Directors at the July 1, 1971 meeting
adopted Resolution No. 3057, This resolution authorized condemnation.
of property in the Heather Farms area for purposes of sewerage. The
developer for the property, Mr. L. B. Nelson, has deposited with the
District a check for $1000.00 and has agreed to reimburse the District
for all costs involved relating to the acquisition of the easement.
2. The invoice from Mr. Robert J. Foley in the amount of $125.00 is for
a real estate appraisal of the property.
3. The invoicefrom Bohn and Carniato in the amount of $650.00 is for
legal services related to the condemnation proceedings.
4.
DATION: Authorize payment of the above invoices.
Recommendation approved:
G. A. Uorstkotte, Jr.
General Manager -Chief Engineer
Respectfully Submitted,
44,
. K. Davis
Secretary of the Board
MEMO r D
VIA:
SUBJECT:
August 16, 1971
FOR: Honorable Members of the Board of Directors
G.
A. Horstkotte, Jr., General Manager -Chief Engineer
F. M. Smith Claim
PtiBLE : Mr. Smith claims that on August 6, 1971 he damaged his tire,
wheel and wheel cover when he struck a curb at one of our job sites
because of our neglect.
GR0JND: The job was located at the intersection of Camino Pablo
The M.H. was on the white line of the two north bound
lanes. It was adequately marked with barricades, cones, men and equipment,
signs and flag stands. Traffic was moving around both sides of theJA.H.
When Mr. Smith went past the area by about 50 ft., his left rear tire
blew out. He as not observed to strike any curbing by the men working
there. He was later observed driving in the other direction towards Orinda
Village on a flat tire. On checking this, it was found to be one half
mile from the point where the tire blew to the nearest service station.
I am assuming that he went to the closest station.
ALTEB1VIVE8; a. Non -Payment
b. Further investigation of claim through employees that
were witness to the event.
4. RECOJI.,,',:,00,1ION: Non -Payment of claim. Mr. Smith cannot prove striking
curb and the damage to the tire and wheel, was caused to a great extent
by driving the car so far on a flat tire.
REM;j v
Recommendation Approved:
G. A. Eorstkotte, Jr.
General Manager -Chief Engineer
Respectfu4y submitted,
Robert H, Hinkson
Superintendent of Field Operations
Ilib Olilielieftelielie'41'
e
Vel
REE
(lili,
lilili—lili Lli 1,li li lililili---cr li„, e lili'
li • li li "li" li (li. ; rli oli/
47.NTRAL„ CONTRA COSTA
SANETARY DiSTREOE 0,E, EL -7t;-,
,o RECEIVED ,
lili,:;1lili:"‘
AUG 1 1 71
1•101.*Ms. ,,M,MIMIONE.
(I)Rlialloy iv') lib l'o. ,, Rood by ,
Corm dliliefli.CP,
1 ,lililidlibkb. E eery
Ph& ay Pula. :
lililililittylie lilato Rs°, I
li.n) Colicolisol
Ago nib
OliolillitliliolililitlielililigliUrrli.
Elilinilip
lilillirmy
limplililielililim
bliboblyli Try y lime
, POblin (bore. HMO "lic
_ _ E
MlifliOlilileYli Oglililili
lid‘li: li, \Ili lit 1„.
IALr' r iltlili) Pi7" n ,t(L,41.li, ;lililili.,j. A-
ELEN,,,,Pr"S
fbr4 ,,,L„ sErE
›li.,li 6Ttc:/3
(e c)CL,
tli-0- „li -lirliir; 'lir tr(2,4 Z.- .rn rs-AJ
cRAE,,E
_
lili li ;li(fl
nr--t ,E3E
1)711 t0/
,lie lili-j li
(lilili rlililili lit ")
L, lilili'lig lililili'li lie
,01,) - ./L rEEEE4
fr).NEJ (1E,E. ECL AE. E4— PEREER'''
bli,(lilim
fRELEENNEEEE; LEET-YE (E„, ETE) OA; (A.
,,-Clili., 17 ) .""rtflililili
INRIEEE, REJ E„E A- (1 LEP) RJR 191 rECE-17
/30). „rf-fLiz.„
r4 ,4•""
04444, ''/44' 444,? 1114, '4 Le' 4,6 44;
"
.Ab
11
August 10, 1971
MEMORANDUM FOR: Honorable Members of the Board of Directors,
VIA: G. A. Horstkotte, Jr. - General Manager -Chief Engineer
SUBJECT: Quitclaim portion of easement Job No. 79
PROBLEM: New development requires abandonment of portion of
existing easement Job No. 79 (LID #1).
2. BACKGROUND: On June 23, 1971, Mr. Horstkotte advised Financial
Title Company that we would abandon easements as required provided
new sewer service for new service have been approved and all
requirements fulfilled.
3. ALTERNATIVE: Deny Quitclaim Deed,
4. RECOMMENDATION: Approve and execute the Quitclaim Deed.
Respectfully submitted„
Recommendation Approved:
citIR:jv
144
er-Chief ngineer
1
yde M. Hopkins
Engineering Assoc.
VIA:
FO
July 29, 1971
Honorable Members of the Board of Directors
G. A. rst1otte, Jr., General Manager -Chief Engineer
Appoinuent of Antonio Granzotto to the position of
Supervising Maintenance Man
RsBLEM: In the 30 -man AtAintenance Department, it is important to
ave one at a supervisory level between Superintendent and
For an. Mr. Granzotto h been with the Di trict for 16 years,
4 of these Maintenance Foreman. Mr. Granzotto is ideally suited to
fill this position.
2. RECOMMENDATION: Appoint Antonio Granzotto to the poition of
Supervising Maintenance Man.
Recommendation Approved:
Hor Otte, Jr!#t
ae al Manager -Chiaf n ineer
j
Respectfully 8 tted,
Robert H. Hinkson
Superintendent of Field Operations
-417#471
July 29, 197].
MEMORANDUM FOR: Honorable Board of Directors
G. A- Horstkotte, General Manager -Chief Engineer
SUBJECT: Request for authorization to hold examination for
Maintenance Leadman
4f)
PROBLEM:To establish an eligible list, by examination, for the position
of ntenance Leadman.
2. BACKGROUND: Our eligibility list for this position is insufficient to
fill openings. 1 request authorization to hold 44 examination in order
to fill authorized positions.
3 CO NDATION: Authorize examination.
RHH:jv
Recommendation Approved:
G. A. Horstkotte, Jr.
General Manager -Chief Engineer
Respectfully submitted,
4)4;s4' 4 l'44i L44/34-4440 -0v-
Robert H. Hickson
Superintendent of Field Operations